Bridge City Independent School District feels the impact of insurance rates and inflation – Orange Leader

Bridge City Independent School District is feeling the impact of insurance rates and inflation

Posted at 12:28 a.m. on Wednesday, September 7, 2022

BRIDGE CITY — An area superintendent says inflation has had an unsustainable impact on school districts and insurance rates have had a negative impact on budgets.

Over the past five years, Bridge City Independent School District insurance has increased 160%, Superintendent Mike Kelly said.

For the 2018-19 school year, the district paid $418,000 for property and casualty insurance. This amount has increased each year to date, with BCISD paying over $1.08 million for 2022-23.

The astronomical cost increase stems from the district’s location and increased disaster potential, Kelly said. A district of similar size and budget to BCISD paid $284,000 for insurance last year. The only difference was that the district is located in central Texas and is less likely to be affected by tropical cyclones, according to BCISD.

Kelly sent a letter to state officials hoping for answers or help. He asked if there could be an allowance to help districts along the coast with rising costs.

“Our coverages are shrinking and getting worse,” he said. “The maximum payout is becoming much higher. The base bonus is out of control. The other thing we are fighting against is inflation. We’re like everyone else, just on a bigger scale.

Kelly said small things like copy paper ranging from $22 a box to $80 a box impact how schools budget.

“With gasoline, diesel, food cost and electricity, we really need something built into our budget from the state for inflation,” Kelly said. “We need some kind of measure because school districts won’t be able to operate on the same amount of money when you have a $30 million budget and you’re talking about 9-10% inflation. You can’t fit everything. »

The superintendent said he and the school board were confident in the budget passed in August.

“At some point you have to wonder about inflation, when it’s going to stop and get better,” Kelly said. “We wonder if the state is going to give extra money to get through these times.”

Texas Chamber Speaker Dade Phelan recently spoke at a Chamber of Commerce luncheon about rising insurance costs.

“I have to talk about TWIA,” he told the crowd of industry people. “It’s the Texas Windstorm Insurance Association. It’s very important to us. We have inside fights with people in Dallas, Austin and other areas who don’t want to pay their fair share. We’re paying their tornadoes and their hailstorms The #1 insurance claim in Texas is for hail damage They have a lot of hail damage at DFW and we pay for it It’s always a challenge to remind them how much how big we are in southeast Texas.

Phelan said he and other lawmakers asked TWIA not to raise rates for 2023, which TWIA’s board agreed to.

— Written by Chris Moore

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